Micron Technology Inc
Exchange: NASDAQSector: TechnologyIndustry: Semiconductors
We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience.
Did you know?
MU's revenue grew at a 8.1% CAGR over the last 6 years.
Current Price
$420.59
-0.22%GoodMoat Value
$200.22
52.4% overvaluedProfile
Valuation (TTM)
Market Cap$473.38B
P/E19.63
EV$451.31B
P/B8.74
Shares Out1.13B
P/Sales8.14
Revenue$58.12B
EV/EBITDA12.67
Micron Technology Inc (MU) Stock Analysis
GoodMoat Analysis
Micron Technology is a leading semiconductor memory manufacturer with a strong competitive position, but it currently trades at a significant premium to its estimated intrinsic value. The business exhibits high profitability and growth, yet its valuation appears demanding based on the provided GoodMoat target.
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Micron Technology designs and manufactures memory and storage solutions, including DRAM and NAND flash, which are essential components for data centers, PCs, and smartphones. Applying the GoodMoat framework, the company likely scores well on criteria like scale privilege, technology leadership, and strategic partnerships, given its position as one of only three major global DRAM producers. This oligopolistic structure creates a durable competitive advantage. The business also shows high-quality financials, with a robust ROE of 44.5%, a profit margin of 41.5%, and explosive revenue growth of 56.7% YoY, indicating strong operational execution.
However, the valuation assessment presents a major hurdle for a value investor. The current price of $382.09 is approximately 91% above the provided GoodMoat target of $200.22, implying a negative margin of safety. While the P/E of 17.8x may seem reasonable, the low FCF Yield of 0.4% suggests cash generation relative to price is currently minimal. According to the Decision Framework, a stock with a strong moat but trading at a price implying a negative margin of safety would be categorized as 'With Caution' or 'Unfavourable' for a new investment, as it requires perfect future execution to justify the price. The extreme discrepancy between the market price and the target value warrants a very high degree of skepticism and further due diligence into the valuation assumptions.
Analysis based on data as of 2024-05-15.
Market Cap$473.38B
Current Price$420.59
P/E Ratio19.63
Forward P/E—
PEG Ratio0.03
EPS$7.59
Book Value$48.12
P/B Ratio8.74
MU Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -11.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 5.6B
Revenue
23.4B
FY19
21.4B
FY20
27.7B
FY21
30.8B
FY22
15.5B
FY23
25.1B
FY24
37.4B
FY25
Net Income
6.3B
FY19
2.7B
FY20
5.9B
FY21
8.7B
FY22
—
FY23
778M
FY24
8.5B
FY25
MU 52-Week Range
$66.58
$461.51
50-Day MA: $402.80200-Day MA: $249.85
Did you know?
MU's revenue grew at a 8.1% CAGR over the last 6 years.
Micron Technology Inc (MU) Financial Summary
Micron Technology Inc (MU) is a Technology company in the Semiconductors industry, listed on NASDAQ. The stock currently trades at $420.59 with a market capitalization of $473.38B.
Key valuation metrics include a P/E ratio of 19.63, price-to-book ratio of 8.74, and EPS of $7.59. The company reports a profit margin of 41.5% and return on equity of 44.5%.
MU Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $473.38B |
| P/E Ratio | 19.63 |
| EPS | $7.59 |
| P/B Ratio | 8.74 |
| P/S Ratio | 8.14 |
| EV/EBITDA | 12.67 |
| Dividend Yield | 0.11% |
| Profit Margin | 41.5% |
| Return on Equity | 44.5% |
| Debt/Equity | 0.28 |
MU Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $23.41B | $6.31B |
| FY20 | $21.43B | $2.69B |
| FY21 | $27.70B | $5.86B |
| FY22 | $30.76B | $8.69B |
| FY23 | $15.54B | $-5.83B |
| FY24 | $25.11B | $778.00M |
| FY25 | $37.38B | $8.54B |
Micron Technology Inc (MU) Valuation
Based on GoodMoat's DCF model, Micron Technology Inc has a fair value estimate of $200.22. At the current price of $420.59, the stock appears 110.1% overvalued relative to our intrinsic value estimate.
MU Quality Indicators
Micron Technology Inc maintains a profit margin of 41.5% and an operating margin of 26.1%. Return on equity stands at 44.5%. The current ratio is 2.52. Debt-to-equity ratio is 0.28.
About Micron Technology Inc
We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience.
MU Free Cash Flow
Micron Technology Inc generated $1.67B in trailing twelve-month free cash flow, representing an FCF yield of 0.35%. This low FCF yield may reflect heavy reinvestment or growth spending.
MU Shares Outstanding
Micron Technology Inc has 1.13 billion shares outstanding at a share price of $420.59, giving it a market capitalization of $473.38B.
MU Recent Insider Trades
Recent insider transactions at Micron Technology Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| ARNZEN APRIL S (EVP and Chief People Officer) | SELL | 8,630 | $2.98M |
| Sadana Sumit (EVP and Chief Business Officer) | SELL | 17,450 | $7.49M |
| RAY MICHAEL CHARLES (SVP, Chief Legal Officer) | SELL | 200 | $80232.00 |